I'm PAYE, I pay my tax as I earn every month. The self employed already get a 'year in kind' by only paying tax on the previous year's earnings. If they don't set aside some money to pay their tax bill (which they should be anticipating), then they need to plan their finances better.
But my point was... The self employed, and I know because I know people who've done it, can claim 80 percent of their previous year's profit for free. Not a loan. Free money. Even if they are working as if Covid never happened. I asked someone who has already done it and his answer was "everyone is doing it".
Hmm...
I paid PAYE and self-assessment for four years, simultaneously. Went into full-time self-employment in April last year.
It's not always easy to set aside money for anything. I'm pretty good with it and had no issue paying my tax bill this January just gone, but I was paying it on far less profit than I made in 19-20, which I am due to pay in January.
Plus, you take on more risk being self-employed. Potentially for more reward, but work can easily dry up, plus you don't get sick days or holidays unless you're in a position where you can turn down work! That never happens, in theory, with PAYE (obviously pandemics aside). It's not an easy decision to make - you give up a lot and also the tax rates/national insurance I believe tend to be higher than PAYE (or at least in the lower brackets), which is why people claim what they can back in expenses.
I've had hardly any income this year yet I still have to pay a hefty tax bill. The savings I had put aside for that have been used to keep me going this year. I'm gonna have to scrimp and save all I can to pay my tax now. There's around 3 million people who are in the same position as I am and, guaranteed, a lot more in a worse position than me and that's a dreadful oversight from the governemnt who have now had time to think of a fairer system.
On your point though, yes, I know a lot of people have taken advantagege and that's not right. But then again, loads of people have benefitted from furlough for the last seven months, and done nothing for 80% of their wage. People can't discriminate because the situation came about and the government did a mass thing to try and cover people - though lots still fell through the gap.
I've had friends who have been on furlough for four or five months and will now be on furlough again. They've not spent any money so hardly missed that 20%, or conversely have had that 20% topped up by their employers anyway.
